Muni Naga Reddy HUF Vs Assistant Commissioner of Commercial Taxes
Date: July 15, 2025
Subject Matter
System to prove the delivery and acknowledgment of the email notices is a must
Summary
The petitioner filed a writ petition challenging two adjudication orders (Annexures C and E) passed under Section 73 of the Goods and Service Tax Act, 2017, for the period of April 2020 to March 2021. The petitioner's primary grievance was that these orders were issued without any prior notice being served upon them.
The learned Additional Government Advocate (AGA) for the respondents claimed that a notice was sent via email on November 29, 2024, followed by a reminder on December 30, 2024. He stated that since the petitioner did not appear despite these electronic communications, the orders were passed.
When the court inquired whether there was a system in place to confirm the delivery, opening, and reading of these email notices, the AGA admitted that no such system existed. The court noted that in such a situation, where the revenue claims to have sent an email but the petitioner claims not to have received it, a proper system for delivery acknowledgment is necessary to avoid such disputes.
Given that the petitioner did not participate in the proceedings and there was no system to prove the delivery and acknowledgment of the email notices, the court allowed the writ petition. The impugned orders (Annexures C and E) were set aside, and the matter was remitted for fresh consideration by the respondent. The petitioner is directed to appear before the respondent on August 4, 2025, at 2:30 P.M. to submit their reply and supporting documents, without the need for any further notice. The respondent is then to proceed in accordance with the law. The court also ordered the matter to be re-listed on August 22, 2025, to enable the respondent to file a compliance report regarding the court's general directions on a system to track email notice delivery.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
1. The petitioner is before this Court, seeking for the following relief:
“i. Issue a writ of certiorari or any other appropriate writ, order or direction to quash and set aside the impugned adjudication orders under section 73 of goods and service act 2017 for the period April 2020 to March 2021. Vide Order No.DCCT (A)-507/DGSTO-5/ADJU/No.113/2024-25 dated 13.09.2024 passed by Respondent No.2; (Annexure C); and Order No.ACCT/LGSTO-152/DRC 07/3B VS 2A/2024-25 dated 11.01.2025 passed by Respondent No.1; Annexure E);
ii. Pass such other or further orders as this Hon’ble Court may deem fit in the facts and circumstances of the case, in the interest of Justice and equity.”
2. The short grievance of the petitioner is that the impugned orders at Annexures – C and E has been passed without issuance of any notice on the petitioner.
3. Sri. K.Hemakumar, the learned Additional Government Advocate would however submit that e-mail notice has been sent on 29.11.2024 and a reminder was sent on 30.12.2024 despite which the petitioner did not appear and as such the orders were passed.
4. On enquiry with learned AGA as to whether there is any system put in place by the respondents indicating an acknowledgment for delivery of the e-mail, he submits that there is no such system.
5. This is a case where though e-mail is claimed to have been sent by Revenue, the petitioner contends that the e- mail has not been received. It would therefore be required for the respondents to establish a system to ascertain delivery of e-mail notices, when the said e-mail was opened and when the email was read, so that these kind of situations could be avoided.
6. In the above circumstances, since the petitioner had not participated in the proceedings, I pass the following:
ORDER
i. The Writ Petition is allowed;
ii. The impugned order No.DCCT(A)-5.7/DGSTO-5/ADJU/No.113/2024-25 dated 13.09.2024 passed by respondent No.2 at Annexure – C and the impugned order No.ACCT/LGSTO-152/DRC 07/3B VS 2A/2024-25 dated 11.01.2025 passed by respondent No.1 at Annexure – E, are set aside;
iii. The matter is remitted for fresh consideration by respondent No.1.
iv. Petitioner shall appear before respondent No.1 without requirement of any further notice on 4th August, 2025 at 2:30 P.M. and submit his reply in such document as the petitioner intends to rely upon and respondent No.1 shall proceed thereafter, in accordance with law;
v. Though the above matter is disposed off, to enable response to file a compliance with the above general directions, re-list on 22nd August, 2025.